Companies including Hut 8, Core Scientific (CORZ), Hive Digital (HIVE), and Bit Digital (BTBT) have reallocated parts of their power and infrastructure assets to serve AI workloads, betting that long-term contracts with hyperscale customers will generate more stable, higher-margin earnings than cryptocurrency mining alone.
Hut 8 has signed two 15-year, triple-net, take-or-pay leases covering 597 megawatts of IT capacity at the River Bend, Louisiana and Beacon Point, Texas campuses. According to Palmer, the deals represent $16.8 billion in contracted base rental value and could increase to $42.8 billion if tenants exercise renewal options.
Palmer said the Beacon Point deal was the primary driver behind the higher valuation. The broker estimated that the project’s first phase alone carries $9.8 billion in base contract value and about $655 million in average annual net operating income.
He also pointed to Hut 8’s financing strategy, noting that the company recently completed $4.25 billion in investment-grade project financing for Beacon Point after raising $3.25 billion for River Bend. The agreements validate management’s strategy to lower its cost of capital by converting development assets into long-term contracted cash flows.
In addition to its existing projects, the report highlighted Hut 8’s development pipeline, which totals more than 9 gigawatts across projects under exclusivity, development, construction and management, providing what it called a long trajectory for future growth.
